Saudi Arabia Invests $6.4 Billion in Syria's Reconstruction

DAMASCUS - In a significant move aimed at bolstering its relationship with Syria, Saudi Arabia has announced an investment package worth $6.4 billion. The announcement was made during a forum in Damascus, highlighting the kingdom's commitment to supporting interim President Ahmed al-Sharaa's administration as it seeks to rebuild the war-torn nation following a prolonged civil conflict.

Saudi Investment Minister Khalid Al-Falih, who delivered the news, emphasized that his visit to Syria was sanctioned by Crown Prince Mohammed bin Salman. Al-Falih described the investment initiatives as a demonstration of Saudi Arabia's steadfast support for Syria during a challenging period.

The investment plans, which include a diverse array of projects, allocate approximately $2.93 billion towards real estate and infrastructure improvements. In addition, around $1.07 billion is designated for advancements in the telecommunications and information technology sectors. Participating companies in these initiatives include prominent entities such as the Saudi Telecom Company (STC), GO Telecom, cybersecurity firm Cipher, and digital security provider Elm, among others.

During the conference, it was revealed that 47 agreements would be formalized, with over 100 companies taking part in discussions on various projects. A notable development from this event is the establishment of a Saudi-Syrian Business Council, which aims to foster further economic cooperation between the two nations. This council's formation was initially scheduled for June but was postponed due to regional tensions.

Saudi Arabia's involvement in Syria has been critical, particularly since the ascent of Sharaa's government after the fall of long-time president Bashar al-Assad in December. The kingdom has utilized its diplomatic channels to advocate for the lifting of U.S. sanctions on Syria, facilitating foreign investment in the country's reconstruction.

In addition to Saudi investments, Syria has recently secured a $7 billion power deal with Qatar and an $800 million agreement with UAE-based port operator DP World, which underscores the growing interest from various Gulf states and Turkey in contributing to Syria's recovery. U.S. energy companies are also preparing to devise a comprehensive strategy for revitalizing Syria's energy infrastructure.

Earlier this year, both Saudi Arabia and Qatar announced plans to settle Syria's arrears with the World Bank, a move that could pave the way for renewed lending opportunities for the country. As the rebuilding efforts commence, the international community is watching closely how these investments will impact Syria's stability and economic recovery.